How to make your retirement dreams a reality this year
Over half of Canadians are using Registered Retirement Savings Plans (RRSPs) to save for their future, according to the results of a Royal Bank of Canada poll released Friday.
After hitting a historic low last year, RBC said 53 per cent of Canadians are now using RRSPs to invest for their retirement, which is up seven per cent from 2021.
The survey also found almost half of younger investors aged 25 to 34 are willing to pay fees with their investment portfolio if it will give an opportunity to earn higher returns.
"When assessing value, investment performance after fees is what really matters,” said Stuart Gray, director of the Financial Planning Centre of Expertise at RBC, in a release.
“It's encouraging to see that younger Canadians understand how crucial this is in achieving your retirement savings goals and building a strong financial future.”
One of the main reasons many young Canadians are focusing on investing is the threat of rising inflation, the survey suggests.
The poll found 85 per cent of younger investors are worried about balancing their current financial situation and saving for the future as basic living expenses continue to rise.
But Gray said it’s a good sign many Canadians are placing the spotlight on their investments, as it will help them manage future uncertainty around inflation and the COVID-19 pandemic.
"The unexpected has changed lives over the past two years, but if you have a plan, it's easier to adapt to those changes," Gray said.
"A plan helps you keep on top of your finances, so you know what adjustments you can make for changing circumstances while saving for today and investing for the future."